"Foot Fault" is a small wholesaler and service supplier concentrating on the tennis market. They are located in the Hamilton, Ontario area and carry on business in South-Central Ontario. In the course of regular business, Foot Fault sells goods and supplies to local sports and athletic clubs (for retail sale in the club's "Pro Shops", meaning the in-club retail stores) as well as servicing the physical needs of clubs (tennis net repairs, tennis court surface repairs, etc.). Foot Fault sources many products from a wide variety of suppliers, although typically there are a small number who represent significant dollar volumes of inventory purchases. Teper and Lubetsky LLP are the auditors for Foot Fault, which has been a client of the firm for several years. One of the audit procedures your manager has assigned to you is to determined if the balances in Foot Fault's Accounts Payable (sometimes known as "Trades Payable") are materially misstated. The Accounts Payable sub-ledger balances to the Accounts Payable Control Account, so that is not an issue for you. You approach this task by stratifying the balances based on a top strata (which includes individually significant accounts) and the remainder of the strata are roughly equally sized by dollar value. This stratification of Accounts Payable and the pre-determined relevant materiality for this account are:

Note: brackets (SXXX) indicate negative dollar values POPULATION SAMPLE Stratum Population Recorded Sample Recorded Misstatement Size 5 Amount Size 5 Amount S Amount 1 15 $312l,500 15 $312,500 $4,365 2 405 $239,063 100 $42,125 $1,920 3 802 $246,094 99 $21,450 ($735) 4 1,600 $225,000 101 $15,648 ($1,065) 5 3,203 $227,343 100 $10,120 $741 TOTAL 6,025 $1,250,000 415 $401,843 $5,226 The audit manager has determined that the appropriate level of materiality applicable to this analysis is: $11,000